Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
~%!i!i
Au we understsad the isots submitted the propsrty ww derised by the Qolased to the United Ohrirtlsn LUutomry 8miaOy of Indifmapolia, Indiane. It oontnined no restrlstlan or prorision whatweYar oonoerning nhtiher or not the 8am should be spent 5.n Texas.
&Sicle 7ll7 of Veran*s Annotated itevlwd Civil 8tatuteu provi4es in part au follarrr
*All property withhi this Stste . . . whioh 8hall mLl, upon pawing to or for the we mf mny ~~o~~*&mratlon or awoolation, be rubfeat to a tu for the boruiit or the State’8 Wnm.i Rommo Zun6, in aoooPtmloa with the rollowing c1Msir10st1on. . . .* *If paeobag to or,iw th+ we or hha United SAate8, bo or Ser the une of si& othu! persw or x-slims, oduee- tiowl or obuitable ~~sditm OF lmaitutio~r, of tso eorpmation or 8saaolai&on not any other prmn, inoluUe4 5.n nny of the olesser mentiione~ in the pneodl portianr OS the original Aot Imom an Chapter 29 ef the vmerp1 Laws of the Seoond Called 5e88ion ot thr Thlrty-dghth Legid.nhwo, the tax Wall be, “59 011 wy tslw in exeom of 9500 and not l x ereUing ~10,000. . . . the derire
It fs the opinion oi W&s 8eepartaunt
in question ia we whloh &mms usdsr the o.la8siiioatU#n 8eb up 5.n the rirst pet of ArtlcZe 7122, *uprat in that it paraw pro exty to or for the use of a ohariteblo organfsatian oae, inrtl- tutfon. St find nothing howover ia ebbs deriee nhlah u8ul6 mko it one paaaing property to e charitable arganiaation to bs ustd within this State. ft is urged, &weveI?, wren, thccqh tlw deriso thee not recplre the money to be apsnt in Texas, that Ur fs6t the maucsy will be so spent, A roakllng of the Various eBnr#iflea- tions set up by Arttale 7128 thxough 7122, insltmive, el.om&g
Benorable George ii. Sheppard, gage 3
&i~pra tnat the- tax la to be oomputed in aooordenoe dth the woriling of the devise itself. Xi the rule be otherwiao, awmy ~8selng to an unole or aunt would not have to pay the tax aohsdule set Out in Utiole 7121 on an affibatit or suoh wc&.eor atantthnttha be spent upon a aMeywaalnSeott0 brother or si8ter at the 6eoaese6, uhlah beer8 a a!aaller tex in mole 7120. l ehedule a8 808, out
Prior to 1933 8 aimllm l xuphion was oontalnod
in the Texne Inheritance Tax Law la rerebnoo to d&tin8 to mli(lioua, eduoetlonal or ohqrkteble orgeair;etiona. Pnaer the exemption (18 it Wgl reeb it uaa naoeaaary that t&a 8evlae be to M in8titUtiOn looatad iA thla IStat tid alao it wan that the boqgmt, deriaa or gift was to ba uaeed woenary dthln this Btate. Tho Auatio Court of Cirll Appoala aons6ru.d in the aaae of Ban Jeointo #et&me1 Beak v. tbia bIbngtlon Sheppard, 125 8. W. (26) 715. Un4er the feota ia that o8ae thn dsriw of one-half of the boooeaed98 a8tete we8 to aa out OS Stat6 oorporation or(ganlnotlS6~ rellgiow, bsnevelent aq4 purpoae8. The oourt held that auoh inatitutba e&wational was not looatbd dthln this Btetr. The aomt aim atet& aa follws 1
140r Aid the will. of Xllro~ nquire the ruada
derived rrom hla tlevin to be wed in Texas, Clenrly under the barter an4 s&l& will tie bsnefiotary owpora- tion could bara und the derim anywhere the dlreotora theroof rhould determine in their tweblngs in Ohio.*
The eboro diacua aod l raPPptlcm was mum&l to ita
pnaent form ae quoted supra by the I+%& Leprial8turo ia 19.933. HOwever, the preaemt examptlon rouuirea thr der@?a bo OM whlah is to be used dthin t&la State and in this reapeotthe pre8ent exemption is ldantioal with the like requuirenont in the prior xemptbn. Therefore t&a oourt*s atetment oohoornlag the berise in the San Jaointa Mational Bank tram I.8 pertinent In eowtti~ the preeent exemgtlan.
rionotable Omme H. Sheppard, p-0 k,
Under the deviw in question the Indiana organiea- t,j,on has the authority' to spend the rooeebs fromtha aale of the proprty anywhere that it SeeB I t to do em. The devise !
ia not one which requixea that the money be apentrrithin this 5tatie. It ta the opinion Of t:iia ikp8rtnsnt, therefo&ya, that fbe property paselag la thePsriaa in qumatfon is cub l ot to the Texas Inheritan F on lta Value la exoes8 0r 0 f 00.
Pours very truly APPROVEDOCT 26, 1940
lzLL.dA*u ATTORNEY GZB%RAL OF TEXAS COMMIITEC